Cassava Sciences Inc. (NASDAQ:SAVA), a clinical-stage biotechnology company with a market capitalization of $112.1 million, has seen its stock tumble to $2.33, near its 52-week low. According to InvestingPro analysis, the stock appears undervalued compared to its Fair Value, with technical indicators suggesting oversold conditions. This significant downturn reflects a broader trend of investor skepticism within the biotech sector, as well as company-specific concerns. Over the past year, the stock has experienced a precipitous decline of 91.43%, with notably high price volatility. While the company maintains more cash than debt on its balance sheet, InvestingPro data reveals 13 additional key insights about SAVA’s financial health and market performance that could help investors make more informed decisions.
In other recent news, Cassava Sciences’ Phase 3 ReThink-ALZ study for the investigational drug simufilam did not meet the targeted outcomes, leading to a significant drop in the company’s shares. The study aimed to improve cognition and function in patients with mild-to-moderate Alzheimer’s disease but failed to meet the co-primary, secondary, and exploratory biomarker endpoints. Following these results, Cassava decided to discontinue its second Phase 3 trial, ReFocus-ALZ, and the Open Label Extension study. Rodman & Renshaw and Jones Trading analysts responded by downgrading Cassava Sciences’ stock from Buy to Sell and maintaining a Hold rating, respectively.
In terms of financial developments, the company reported a net loss of $27.9 million for the third quarter of 2024, compared to a net loss of $25.7 million in the same period in 2023. However, the company achieved a net income of $25 million in the first quarter, a significant turnaround from the previous year’s net loss. Cassava Sciences also agreed to a $40 million settlement with the U.S. Securities and Exchange Commission over allegations of misleading statements regarding its Alzheimer’s drug trial results. The company’s leadership also saw changes with the appointment of Richard Barry as CEO and Claude Nicaise, M.D., as Chairman of the Board. These are the recent developments for Cassava Sciences.
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